Netflix is under investigation by French and Dutch investigators for possible violations of tax laws in France. The company’s offices in Paris and Amsterdam were searched as part of a preliminary investigation into the concealment of income.
On November 5, 2024, a special French financial crime unit, together with Dutch law enforcement officers, searched the offices of Netflix in Paris and Amsterdam. The investigation began as early as 2022, when French authorities suspected the company of understating revenues in France, where it usually makes significant profits from more than 10 million subscribers. By declaring part of its income through the Netherlands, the company avoided paying a large part of corporate tax in France until 2021.
During audits over the past three years, the company reported a sharp increase in annual revenue in France from €47.1 million in 2020 to €1.2 billion in 2021. Netflix opened an office in Paris in 2020, and while the company says it complies with local tax laws, investigators are looking into whether it continues to avoid paying full taxes beyond 2021.
The Netflix raids show how international companies are facing tougher scrutiny of tax compliance in Europe. If the allegations are confirmed, it could lead to significant financial penalties and potential changes to how Netflix does business in France and the Netherlands.
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